US Hits Chinese Imports with 104% Tariff, China Plans Hit Back with Export Limits

The United States has raised tariffs on Chinese products to a total of 104%, starting April 9. This includes a 20% duty added in March, another 34% last week, and now a 50% increase. The White House confirmed the decision, following through on former President Donald Trump’s earlier warning that China must reduce its own trade penalties.

This move marks one of the most forceful trade actions in recent U.S. history and reflects a hardline approach to dealing with economic competition from China.

China Responds with Countermeasures and Focus on Stability

China was quick to respond. Premier Li Qiang spoke with European Commission President Ursula von der Leyen, criticizing the U.S. move. He called for open cooperation and said that China has enough policy tools to deal with economic pressure.

Li added that the country’s current financial strategy already accounts for risks expected in 2025. He also stated that China is committed to protecting its interests and maintaining steady growth.

As part of its response, China has restricted exports of rare-earth materials like terbium, dysprosium, scandium, and yttrium. These minerals are vital for products like electric vehicles, wind turbines, and military equipment. The export limits began on April 4.

Stock Markets React Sharply to Ongoing Trade Tension

Investors reacted to the rising trade fight with heavy selling in global markets. The S&P 500 is down 20% from its February high. The Dow Jones has fallen more than 17%, and the Nasdaq has officially entered bear market territory.

In Asia, the Hang Seng Tech Index dropped by 27% in just one month. The Chinese yuan also weakened to its lowest level since January. On the flip side, Chinese government bonds have become more attractive, with investors looking for safer places to park their money.

White House Press Secretary Karoline Leavitt said there would be no delay in the new tariffs. “President Trump believes these steps are necessary to support American industries,” she told reporters. A U.S. official added that the administration may apply more tariffs under the same strategy.

India Now Part of U.S. Trade Action Plan

India has also been caught in the current trade sweep. A 26% tariff on Indian goods was announced earlier this month, with the U.S. citing the need for fair trade practices. This shows Washington is expanding its strategy beyond China.

Analysts warn that continued trade fights could lead to long-term changes in how companies manage supply chains and where countries focus their economic partnerships.

What began as a policy decision on tariffs is quickly turning into a broader power struggle over global trade rules. The effects could last well into the future and reshape relationships between major economies.

Also Read: China Could Crash U.S. Economy by Selling $1 Trillion in Debt—Will It Happen?